IHSG Predicted to Fluctuate Amid Global and Domestic Sentiment
The Indonesian Stock Exchange’s main index (IHSG) opened higher on Monday, 25 May 2026, but is predicted to fluctuate throughout the day, influenced by domestic government policies and global geopolitical dynamics.
Phintraco Sekuritas Chief Researcher Ratna Lim stated that technically, the IHSG is expected to range between 6,000 and 6,250 this week. She noted that investors are closely monitoring the MSCI index rebalancing at the end of May, occurring during a relatively short trading week. Additionally, uncertainty around new government policies has led to cautious investor sentiment, with markets waiting for clarity before expanding further.
Internationally, attention is focused on the US Federal Reserve leadership transition, with Kevin Warsh appointed as Chairman on 22 May, replacing Jerome Powell. This change is critical for determining future US monetary policy. Meanwhile, Middle East tensions are ongoing, with US President Donald Trump claiming a deal to reopen the Strait of Hormuz, though Iranian authorities denied this. Iranian state media reported dozens of ships passing through the strait under military supervision.
Global stock markets closed positively last week, with Euro Stoxx 50 rising 0.99%, UK’s FTSE 100 up 0.22%, Germany’s DAX gaining 1.15%, and France’s CAC 40 increasing 0.37%. Wall Street also saw gains: Dow Jones up 0.58%, S&P 500 up 0.37%, and Nasdaq Composite up 0.42%.
The IHSG opened down 31 points (-0.48%) to 6,128 on Monday morning. Finance Minister Purbaya Yudhi Sadewa predicted a strong rebound next week, citing robust economic fundamentals and improved corporate profitability. On Thursday, 21 May, the index closed 3.54% lower at 6,094.94, driven by declines in raw materials and energy sectors due to plans for a single state-owned enterprise exporter.
Purbaya also expressed confidence that the IHSG would rise once investors understand the positive impact of PT Danantara Sumber Daya Indonesia (DSI) on listed companies.